What Does A Credit Analyst Do?

The key role of a Credit Analyst consists of assessing the credit-worthiness of existing or prospective clients. They analyze financial records like the earnings, savings, payments, and purchases of companies or individuals, as well as analyze their liquidity, profitability, and credit histories.

Credit Analysts typically earn $58,791 annually, which breaks down to $28.27 an hour. However, Credit Analysts can earn anywhere from upwards of $39,000 to $87,000 a year. This means that the top-earning Credit Analysts make $48,000 more than the lowest-earning ones.

Maybe you're a current Credit Analyst looking for a new opportunity, or maybe you're entertaining the notion of becoming a Credit Analyst and want to see how it compares to similar jobs. We've compiled extensive information on becoming a Accounts Receivable Analyst, Credit Officer, Investment Banking Analyst, and Credit Representative just so you can compare. But more on how these roles compare to a Credit Analyst later.

Credit Analyst Traits
Math skills
Math skills include being able to perform basic addition and subtraction, as well as solving for the unknown and visualizing data that will be helpful in the workplace.
Computer skills
Computer skills involves understanding how to operate a computer, as well as computer programs and applications.
Listening skills
Listening is an important part of the communication process as it allows you to understand information.

Credit Analyst Job Description

Here are the duties and responsibilities that a Credit Analyst is likely to perform in their role.

  • Manage high volume collections and account reconciliations while consistently exceeding DSO goals.
  • Achieve satisfactory credit administration goals, and deliver results in achievement of target credit quality with adequate compensation for risk.
  • Establish credit limits for new and existing customers using various credit tools including Dunn and Bradstreet and Equifax.
  • Cooperate with senior colleagues to conduct stratify sampling of GSE loan data to draw samples using SQL in SAS.
  • Research historical returns of stock, real estate and house price index on Bloomberg to measure market factor correlations.
  • Maintain excellent relationship and customer service with all parties, including selling banks/financial institutions, borrowers and co-workers.
  • Extract data leveraging SQL server; fill in missing values and smooth noise data to provide higher quality data.
  • Adopt ARIMA and GARCH in SAS to develop time series models of mortgage rates, unemployment rates and housing prices.
  • Apply Monte Carlo simulation to formulate scenario analysis using VBA/Excel cash flow model.
  • Implement structuring tools in VBA to price tranches of reinsurance arrangements by stratifying distributions of expect loss.

Credit Analyst Skills and Personality Traits

We calculated that 15% of Credit Analysts are proficient in Credit Reports, Loan Portfolio, and Customer Service. They’re also known for soft skills such as Math skills, Computer skills, and Listening skills.

We break down the percentage of Credit Analysts that have these skills listed on their resume here:

  • Credit Reports, 15%

    Provided professional, courteous service to Sales staff calling for decisions related to credit applications and evaluated inconsistencies in credit reports.

  • Loan Portfolio, 12%

    Charter Strategies helps financial institutions enhance loan portfolio performance and profitability while establishing and implementing enterprise risk management processes.

  • Customer Service, 8%

    Worked closely with customer service staff as a liaison between customer and sales representatives to develop and maintain excellent sales/credit relationships.

  • Financial Statements, 8%

    Analyzed financial statements, prepared cash flow projections and compiled business information to prepare commercial credit applications for loan committee review.

  • Credit Limits, 4%

    Determined credit worthiness and evaluated customer financial statements and other credit related information, set appropriate credit limits for customers.

  • Credit Card Applications, 4%

    Analyze personal and business credit card applications to approve or decline requests based upon judgmental lending philosophy.

Additionally, Credit Analysts have more skills than just Credit Reports, Loan Portfolio, and Customer Service. Read about their personality traits here:

Over half of Credit Analysts have graduated with a bachelor's degree. In fact, it seems 44.5% of people who became a Credit Analyst earned a bachelor's degree. When it comes down to graduating with a master's degree roughly 21.4% in this career have them. If you're wanting to pursue this career, it seems it may be possible to be successful with a high school degree. In fact, most Credit Analysts have a college degree. But about one out of every seven Credit Analysts didn't attend college at all.

Those Credit Analysts who do attend college, typically earn either a Business degree or a Finance degree. Less commonly earned degrees for Credit Analysts include a Accounting degree or a Management degree.

Now that you have your degree, you're ready to become a Credit Analyst. So where do you start applying? According to our research, Credit Analysts are mostly hired by Robert Half International, Td Bank North, and U.S. Bank. Now is a good time to apply as Robert Half International has 18 Credit Analysts job openings, and there are 17 at Td Bank North and 17 at U.S. Bank.

If you're in it for the money, you'll want to apply for positions at Morgan Stanley, Citi, and Goldman Sachs as that's where Credit Analysts seem to make the most money. Let's take a closer look. At Morgan Stanley, the average Credit Analyst salary is $111,718. Whereas at Citi, Credit Analysts earn roughly $107,690. And at Goldman Sachs, they make an average salary of $106,264. Before you get too excited over those salary numbers, you should make sure that securing a job at these companies is doable. For example, while Morgan Stanley has 1 job listings for Credit Analysts, Citi and Goldman Sachs have 2 and 0 job listings respectively.

Salaries aside, the most respected Credit Analysts are working at Bank of America, JPMorgan Chase, and Wells Fargo. By assessing which schools Credit Analysts mainly earn their degrees, and comparing that with the companies that have hired a significant number of Credit Analysts from the top 100 educational institutions in the United States, we're able to determine the most prestigious companies.

The three companies that hire the most prestigious graphic designers are:

    How a Credit Analyst Compares to an Accounts Receivable Analyst

    An Accounts Receivable Analyst provides accounts receivable support through monitoring all aspects of the collection of outstanding debts owed to a company. They check missing and unresolved payment issues, monitor overdue accounts, and prepare statements for managers.

    First up to compare is the job of a Accounts Receivable Analyst. Let's start with salary. Generally speaking, Accounts Receivable Analysts receive $14,559 lower pay than Credit Analysts per year.

    The two careers find some common ground in the skills department though. Both Credit Analysts and Accounts Receivable Analysts alike are skilled in Credit Reports, Customer Service, and Financial Statements.

    As far as similarities go, this is where it ends because a Credit Analyst also must be experienced in skills such as Loan Portfolio, Credit Card Applications, Credit Line Increases, and Credit Risk. Whereas a Accounts Receivable Analyst is skilled in General Ledger Accounts, Credit Card Transactions, Journal Entries, and Delinquent Accounts. So if you're looking for what truly separates the two careers, you've found it.

    Accounts Receivable Analysts tend to make the most money in the Automotive industry by averaging a salary of $47,113. In contrast, Credit Analysts make the biggest average salary of $60,559 in the Finance industry. That's quite a difference.

    The education of Accounts Receivable Analysts is a bit different than the education of Credit Analysts in that they tend to reach lower levels of education. A 6.1% of Accounts Receivable Analysts are less likely to graduate with a Master's Degree. Additionally, they're 0.5% less likely to earn a Doctoral Degree.

    How a Credit Analyst Compares to a Credit Officer

    Now we'll compare Credit Officers, which averages a higher salary of $58,532 higher than Credit Analysts a year.

    Not everything about these jobs is different. Take their skills, for example. Credit Analysts and Credit Officers both require similar skills like Credit Reports, Loan Portfolio, and Customer Service.

    While some skills are similar, others aren't. For example, a Credit Analyst requires skills like Credit Card Applications, Credit Line Increases, Customer Accounts, and New Accounts. But your average Credit Officer will need skills, such as, Covenant Compliance, Asset Quality, Risk Management, and Credit Committee. This is where the differences really kick in.

    While we already know that Credit Officers earn higher, we took a step further to see what industry these workers typically make the most. Interestingly, Credit Officers earn the most pay in the Finance industry with an average salary of $117,391. Whereas, Credit Analysts have higher paychecks in the Finance industry where they earn an average of $60,559.

    So you need to know how much education you're going to need. As it turns out Credit Officers study at higher levels of education than Credit Analysts. They're 15.0% more likely to obtain a Master's Degree while being 0.5% more likely to earn a Doctoral Degree.

    How a Credit Analyst Compares to an Investment Banking Analyst

    An Investment Banking Analyst reviews and analyzes data for investment banking portfolios. They work with individuals and businesses to suggest potential investments for their clients.

    Let's now take a look at how Investment Banking Analysts compare. On an average scale, these workers bring in higher dough than Credit Analysts with a higher pay of $16,271 per year.

    Credit Analysts and Investment Banking Analysts both have similar skills such as Financial Statements, Real Estate, and Due Diligence, but they differ in skills past that.

    As mentioned, these two careers differ between other skills that are required for performing the work exceedingly well. For starters, Credit Analysts are more likely to have skills like Credit Reports, Loan Portfolio, Customer Service, and Credit Limits. But a Investment Banking Analyst will probably be skilled in Financial Models, Equity, Precedent Transaction Analysis, and DCF. This shows just how different these careers can be.

    Interestingly, Investment Banking Analysts earn the most pay in the Finance industry, where they command an average salary of $75,090. As mentioned previously, Credit Analysts rake in the most money in the Finance industry with an average salary of $$60,559.

    For educational purposes, Investment Banking Analysts are known for reaching higher levels when compared to Credit Analysts. In fact, they're 12.4% more likely to graduate with a Master's Degree, and 1.1% more likely to earn a Doctoral Degree.

    How a Credit Analyst Compares to a Credit Representative

    Last, but not least, are the Credit Representatives who typically earn lower pay than Credit Analysts, with a difference of $21,059 per year.

    Both professions of Credit Analysts and Credit Representatives use skills such as Credit Reports, Loan Portfolio, and Customer Service within their day-to-day roles.

    Even though their skill sets overlap, there are some key differences that are important to note. For one, a Credit Analyst tends to have more use for skills like Credit Card Applications, Credit Line Increases, Income Tax Returns, and Annual Reviews. Meanwhile, a typical Credit Representative makes use out of skills like Credit Card Transactions, Process Credit Applications, Delinquent Accounts, and Billing Questions. The difference in skills between the two professions really shows how different the two are.

    In general, Credit Representatives make a higher salary in the Finance industry with an average of $40,398.

    On the topic of education, the two careers have some notable differences. Credit Representatives reach lower levels of education than Credit Analysts with the likelihood of them earning a Master's Degree being 11.2% less. Plus, they're 0.2% less likely to graduate with a Doctoral Degree.